Product bundling and substitution recommendation system: Facilitating marketing improvement strategy of retail business

Abstract

A retail store is a place where a variety of everyday items are sold. Supermarkets need to use different tactics to sell their products and attract consumers. According to an interview with an employee of Supermarket X, one strategy supermarkets use is to bundle products. This involves combining two or more products into one package and selling them at a discounted price. Supermarkets sometimes need help choosing the products to bundle and finding similar products due to limited stock. Based on the problem description, it can be inferred that the supermarket system will utilize the Apriori algorithm for creating product bundling and the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) method to showcase similar products and predict if any products are running low on stock. The system's performance has been evaluated through trials and validation at the supermarket. The findings showed that they were able to determine which products may be included in the package with the use of this product packaging automation system. The results were promising, indicating that choosing replacement products can aid in lowering the inventory of goods that are not doing well